GHH Senior is not only active in carrying out investigations for businesses (quasi) government departments, lawyers, foundations and other organisations but is also active in warning its readers.
 
Through the GHH Senior Prevention Guide all kinds of irregularities are brought to the attention of our readers. These practical examples drawn from our investigations are intended to show others the kind of problems that can arise.
 
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GHH Senior

VMB Security & Solutions

Bakkenzuigerstraat 44, 1333 AH Almere, The Netherlands
Phone: +31 (0) 36 549 98 19
Email: info@vmb.biz 
Website: www.vmb.bizm 

The managing director / owner’s disappointment and indignation are understandable when confronted with evidence we deliver proving the untrustworthiness of, or even actual fraud, theft or embezzlement, committed by an employee whom they had trusted and valued, especially if that person has been employed for many years and the irregularities had also been running for years. It is even worse if that employee is member of the family, a confidant, or a possible successor.

But fraudsters may be found in the best of families and companies. It has nothing to do with the care that your company or you personally have expended on the employee concerned. If that individual were to be employed in another company the chance would be just as great that they would step out of line there too. It is probable that this person behaved in such a way during previous employment, making use of a lack of close checks and controls or creating a lack of transparency.

It is mostly the longing for ‘the good life’ or some personal hidden agenda that leads to them coming off the rails. Often they continue until their behaviour causes some personal tragedy for them and/or their family, bringing about change. Finding out what their motivation may be is a task for the psychologists. Our task consists of assembling convincing and legal evidence showing that your company’s interests, at home and abroad, have been damaged, or providing advice to protect your company property and future development. Whether or not calling us in is shutting the door after the horse has bolted, you have nothing to be ashamed of and nothing to loose. Others may have simply misused your confidence in them, but change must be brought about for their sake and yours.

A discussion with one of our specialists can clarify your doubts and lead the way to a solution and will be confidential and without any obligation.

The administration of money, goods and work-time is a critical factor for the profitability of an organisation. If the data is not up-to-date, not conveniently arranged, or there is a lack of clear cross-referencing, the chance of fraud cannot be excluded.

Fraud with money is always the preference of the fraudster. Why? Because it is easier to carry and to hide, and no tax needs to be paid on it. Theft of goods usually brings less than theft of money because money maintains 100% value whereas goods have to be sold at reduced prices. It is often used for pocket money and for extramarital expenses and easiest to obtain by regularly dipping into the cash, not always putting sales or repair charges through the book-keeping or the cash register, or fiddling with expense declarations or credit notes.

Because not everyone has access to the cash of the business, people in other functions are forced to be satisfied with goods from the production line or the stores. These may be for selling, exchanging for other stolen goods, or giving as gifts.

The third possible loss to your company comes from misuse of time off the premises. Trading or working on their own account or for a third party by your representatives, the private transportation in your vehicles by your drivers, and work carried out for their own clients by your mechanics, builders or other service personnel (perhaps evening using your tools, parts and materials) can make a large hole in your company’s profits.

If the quarterly figures of the company show little difference, by preference working in percentages and not in monetary amounts, and the administration during holidays etc is locked away from ‘unauthorised’ persons, then it is probably time to have a confidential talk with one of our experts.

It is remarkable that many short periods of sickness fall around a weekend, especially if the weather is nice or during recent days people have been partying. And usually it is the same people.

But some go a step further. They report that a member of their family is seriously ill and request extra free days or flexible working hours so that they can care for their sick partner, child or aged parent. There are few managers who will refuse such a request.

A fieldworker had requested to exchange his day shift for evening work because of the incurable illness of his wife. This would enable him to care for his wife during the day and other members of the family would take turns to sit with her during the evening hours. Of course his request was granted and he received profuse expressions of sympathy from management and colleagues. Imagine the surprise of a colleague when they saw the man’s wife walking along the street. She limped a little but that was because she had fallen off her horse, otherwise she was perfectly fit.

We discovered that the real reason that the man had asked for a change of working hours was that he was having an affair with the wife of a colleague and that colleague worked evenings. The man wanted to be able to meet his colleague’s wife when that colleague was working.

In another instance an employee requested permission to take some days off work to care for his dying father and after his death to make funeral arrangements and settle his father’s affairs. Again there was no objection by management. Again the desperately ill person was seen in the street. With the consent of the employer we were able to speak with the father and afterwards with the son to give him the good news that his father was not dead and showed him a photograph we had taken to prove it.

The employer then proceeded to deal with the man’s absenteeism.

When deciding to take on a new partner or other top figure in your company, not only their previous jobs and performances are of importance. The decisive factor we often find is the personal attitude and aspirations of the new comer. The references that are supplied are not always neutral. No one wants to show his mistakes. Just as with a reference for deliveries on credit no one will admit to having had a less than good reputation with a person or organisation.

A good indicator of the correctness of the data presented can be found in the market and circles in which the prospective acquisition has moved. Particularly if it is noticeable that the persons name frequently appears in the society columns of newspapers and magazines and in whose company they are to be seen. What extravagant hobbies are they financing and what good causes do they support and are these publicity seeking devices to advance their own reputation?

Do not allow yourself to be blinded by appearances, by the expensive yacht, the large house, the private plane or exciting car. As a bailiff of our acquaintance once said, “Most people look up to. I look into”

So do we.

Fraud per e-mail, facsimile and telephone grows even larger.

The so-called ‘Nigerian letters’ with promises of easy millions just for the use of your personal and banking details have been around for years and are widely known as pure fraud, yet they still find victims. The same goes for offers of an expensive liquid said to change paper into dollar bills. People have been arrested in Europe for trying to perpetrate this fraud.

These have been followed by e-mails, facsimiles or telephone calls informing the recipient that they have won a cash prize or foreign holiday for which they must telephone a foreign number. What the senders of these messages do not tell is how much this telephone call will cost and that they will collect a large part of the payment. Or they ask for payment of an amount to cover administration or tax on the prize. So, no prize and money lost.

You may also receive an e-mail supposedly from your bank or credit card company which requests your personal and/or banking details, perhaps even your pin number, so that they can be checked in order to prevent fraud. Nothing could be further from the truth! Do not answer. No bank or credit card company would approach you in this way.

There are also e-mail auctions or companies that make use of misleading names similar to well-known firms who will accept your bid or purchase against prepayment. Again, fraud, money lost.

And finally do not forget the free offers of a sexual nature and other spams with attachments. Before you know it you have ‘spyware’ or a virus in your computer system. Never open an attachment from an unknown sender.

Is your company securely locked up? Are all the latest design and technical provisions in use? Are there systems in place for secure organisation, administration and checking? Many would say yes to these questions, which makes it all the more surprising that so little attention is paid to antecedent inquiries into new employees. References and diplomas may be asked for. Perhaps even a telephone call to a previous employer with brief questions about the applicant’s work. Or a telephone call is placed to a referee whom the applicant themselves has selected. But for the rest, personnel staff too often relies on their own knowledge of people.

Those who have a past know how to pull the wool over the eyes of a prospective employer. In the first place they really need a new employer, particularly if they have been out of circulation for a while. Moreover they have probably learned from experience how to do it.

The basis of a professional antecedent inquiry consists of a check of all the data supplied by the prospective employee. We pay special attention to sabbaticals, studies and periods spent abroad. We advise the employer at the first interview to inform the applicant that this will take place and to sign a declaration that they have no objection to such an inquiry. This can be useful for us when we approach people with questions and can also deter some people with a past from proceeding with their application.

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